![]() ![]() The logic of Bilder, then, is that, in a self-quarantine situation, the transportation costs of getting to the place of quarantine would be deductible, but the meals and lodging costs of being at the place of quarantine would not. ![]() Note that Section 213(e)(2) would be of no help in the self-quarantining situation, since it requires that the medical care is provided by a physician, in a hospital, or hospital equivalent. The amount taken into account under the preceding sentence shall not exceed $50 for each night for each individual. (B) there is no significant element of personal pleasure, recreation, or vacation in the travel away from home. (A) the medical care… is provided by a physician in a licensed hospital (or in a medical care facility which is related to, or the equivalent of, a licensed hospital), and Amounts paid for certain lodging away from home treated as paid for medical care.Īmounts paid for lodging (not lavish or extravagant under the circumstances) while away from home primarily for and essential to medical care …shall be treated as amounts paid for medical care if. Section 213(e)(2) of the Internal Revenue Code provides:Ģ. Therefore, when one goes away from home for medical reasons, the costs of getting there are a deductible medical expense, but the costs of being there are not.Ĭongress has since mitigated the effect of the Bilder case. It noted the clear legislative history of the enactment of the 1954 Code, showing that Congress had replaced the broad term “travel” with the much narrower “transportation.” 8 The Supreme Court quoted the House Report:įor example, if a doctor prescribes that a patient must go to Florida in order to alleviate specific chronic ailments and to escape unfavorable climatic conditions which have proven injurious to the health of the taxpayer, and the travel is prescribed for reasons other than the general improvement of a patient’s health, the cost of the patient’s transportation to Florida would be deductible but not his living expenses while there. The Supreme Court allowed a deduction for the expenses of transportation to and from Florida, but not for the living expenses while in Florida. Accordingly, he and his family spent two winters in Florida, claiming the Florida rental expenses as a medical deduction. Bilder, 7 the taxpayer, a New Jersey resident who had suffered four heart attacks, was advised by his physician to move to a warmer climate. Commissioner, the taxpayer was allowed a deduction for the costs of moving from Cleveland to Florida for the winters, in the hope that the warmer climate of Florida would alleviate his ear condition. Before the enactment of the 1954 Code, these travel expenditures were usually deductible in full. Taxpayers often move to a different place-typically from a cold climate to a warmer one-in order to alleviate a medical condition. How do these differences impact on the deduction? Third, Patient incurs expenses not for her own health, but for the health of others. Second, there is no consultation, diagnosis or treatment by a licensed medical professional, nor are there prescription drugs administered. First, the patient leaves her home and stays away for fourteen days. Self-quarantining is different in at least three respects. Patient pays the doctor’s fee, and pays for the prescription drugs. She consults with a licensed medical professional, who diagnoses and treats her condition, perhaps with prescription drugs. ![]() Consider the quintessential medical expense. To analyze medical quarantining under current tax law, it is helpful to determine how it is different from other, clearly deductible medical expenses. Can Taxpayer deduct the fourteen days of meals and lodging as a medical expense? 5 In order to protect society in general and Taxpayer’s household in particular, she spends the fourteen days in a nearby hotel. 3 In either event, Taxpayer self-quarantines for fourteen days, 4 pursuant to government guidelines. 2 Alternatively, she has just returned home from an international trip. To take a more real-world example, Taxpayer recently came in close contact with someone who has tested positive for the COVID-19 virus. Are the expenses of her self-quarantine deductible as medical expenses? 1 In fact, her motivation is solely for the medical well-being of others, not herself. Accordingly, she self-quarantines in the Ice Palace. If she touches another person, or even merely flutters her hands carelessly in that person’s direction, that person will be frozen. ![]() The Snow Queen, who is in otherwise perfect health, has an unfortunate disability. ![]()
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